YouTube taking Vevo stake

YouTube owner Google is set to take a stake of close to 10 per cent in Vevo – the music video website founded by Universal and Sony – in a deal worth $50 million.

The deal between Google and Vevo, which has not yet been signed, is reported to include the renewal of an agreement in which the latter will distribute hundreds of millions of music clips and videos on YouTube.

Vevo considered distribution deals with Facebook and MTV-owned Viacom in the past to look at improving the revenues.